2. Introduction
Over 10 yrs in Online
Commission Junction
DGM
AdLINK Group (affilinet)
Affiliate champion
Performance Marketing in my blood!
3. Agenda
History of Online Performance Marketing
Current Market Status
Trends
What should Advertisers focus on?
Total Advertising spend Online v Offline
How could Performance work Offline?
4. History of Online Performance Marketing
Started in the US by Jeff Bezos – Amazon
Affiliate Marketing entered the UK in 1999
Affiliate Networks exploded 2001-04
By 2004, market was worth £600m
Lead Generation business started to emerge
Performance Networks and Arbitrage
Quality over Quantity
5. Current Market Status
UK online retail sales generated by affiliate
marketing: 2004-08
£4,500
£4,000
£3,820m
£3,500
£3,130m
£3,000
GBP Millions
£2,500
£2,160m
£2,000
£1,500
£1,350m
£1,000
£600m
£500
£0
2004 2005 2006 2007 2008
2009
7. Trends in Performance Marketing
Reliance on SEM Publishers – brand bidding
restrictions
Incremental sales value – how do Incentive
Publishers fit in?
Voucher Code debate!
Measuring against other Online activity – how
far do you go?
Attributing multi-commission payments on a
sale
8. What should Advertisers focus on?
Quality over Quantity
Servicing top relationships correctly – more
face-to-face contact
Don’t try & grow in a direction that competes
with your top relationships
There is still growth in Online…particularly in
Performance!
10. Online Spend
Online
UK Internet Advertising worth £3,3bn in 2008
- the only medium to experience growth
20% of all advertising budgets now spent
online
Level pegging with Press Display
11. Offline Growth Trends: 2008
Offline
Cinema only other medium to show positive
growth; 1% of market
The spotlight is now on accountability
Media rationing in place
Commoditization of buying
Prices for Offline real estate have plummeted
ROI is now a given
12. Total Advertising Spend : Online v Offline
Cinema
1%
Cinema
Direct Mail
Directories
Direct Mail
12%
Television 5%
22%
Directories
Internet
Radio
3%
Outdoor
Internet
19%
Press Classified
Press Display
20%
Press Display
Outdoor
5%
Press Classified
Radio
13%
Total Adspend: £17.5 billion Television
Source: IAB/PriceWaterhouseCoopers, 2009
13. How could Performance work Offline?
TVPRCO channels are still under utilising
Performance opportunities
Remnant space and CPA
Commonplace to see URLs in Print and
Broadcast format but…
These are regularly generic, and not dedicated
to a particular offer, or call to action
15. Adding in Performance
Both adverts push the product’s brand
message
Slight amendments to the script would allow
you to build in
A product-specific call to action
A unique telephone number and/or URL
A trackable action, and an attribution value (CPA)
16. TV Advertising
Vodafone ‘Freedom Packs’
Limited customer engagement
Generic contact point
No specific call to action
Could use Performance to help re-establish
brand within busy sector
18. Adding in Performance
Ads appeared in Stuff magazine (UK ‘gadget’
magazine, Feb edition)
Neither advert had a specific offer for the model
Adding a unique offer URL or phone number enables
clients to track through to order…
And pay Media Partner on a cost per order?
19. To Summarise
Online has a proven track record in Performance and
there is still growth to come this year
Performance is emerging in Offline. It’s always been
there, but there but tracking conversion has been
manual
Clients looking for more customer engagement
across all media